GOOD NEWS FOR ESTATE TAX FOES

House action last week caused at least a “baby step” to be taken relative to repeal of the estate tax. The House Ways and Means Committee, by a vote of 22 to 10, passed H.R. 1105, the “Death Tax Repeal Act of 2015.”

If/when it ever reaches Obama’s desk, veto is likely, but at least some in Congress are heading in the right direction.

If passed, the act would not only repeal the estate tax, but also the GST tax for estates of decedents dying after the date of enactment.

The bill would retain the gift tax with a top marginal rate of 35%, and basis rules would remain unchanged (carryover basis for gifted assets; fair market value step up for inherited assets.)